Dell: Enterprises Buying More Servers, PCs

Dell (NASDAQ: DELL) proved once more that the refresh in corporate systems continues going strong, even as enterprises further loosen their purse strings. The No. 3 PC maker said it saw surging demand among IT buyers in large enterprises, SMBs, and the public sector — particularly in health care.

International regions proved especially lucrative, as did IT services, an area where Dell sees continued growth ahead and is already reaping the benefits of its acquisition of Perot Systems last year. ServerWatch takes a look at the numbers, how enterprises are spending their budgets, and what Dell sees in the quarters ahead.

Surging enterprise and public-sector demand for Dell’s servers, storage and networking components propelled sales at the No. 3 PC maker up 22 percent from a year ago, enough top Wall Street’s quarterly revenue and earnings estimates.

For its second quarter of fiscal 2011, Dell said sales totaled $15.5 billion, beating analysts’ revenue estimates of $15.2 billion, according to Thomson Reuters data. Earnings before one-time charges came in at $0.32 per share, ahead of Wall Street consensus of $0.30 per share.

Read the full story at ServerWatch:


Dell Sees Server, Services Sales Soar